Michelle Mulherin (Fine Gael) | Oireachtas source

I welcome the Minister to the House. On the Order of Business, I asked that he attend to discuss a matter and, hey presto, he is here. He was scheduled to attended anyway, but I wish to raise the pressing issue of defined benefit pension schemes. People are trapped because they paid into private pension funds, now underfunded, that were organised through their workplaces. People are getting paltry sums if they are getting anything at all from pensions into which they paid for all of their lives. This issue is topical, given that Independent News and Media trustees have taken issue with ending its defined benefit scheme.

This is a serious problem. I know of it from my town and from businesses. Workers joined schemes at a young age believing that they had no choice. They were not advised that it was an investment that might fail. Employers have a duty of care. Their employees relied on and have confidence and trust in them. After saving for all of their lives, however, some of those employees now have nothing. It is appalling. If people get into hardship, it comes back on the State, yet employers who have been instrumental in setting up these funds are still solvent and trading and can go their merry way. That is not fair. I raised this issue in the Dáil with the Minister's predecessor, Deputy Burton. Legislation was introduced, but as many as 600,000 people may be in this dilemma. That is immense.

Although the Minister might not be in a position to do so today, I call on him to take action. Instead of everything falling on the taxpayer, we must consider the employer's duty of care towards employees when making such financial investments.

I compliment the Minister on his endeavours, which are set out in the Bill. Many areas have been covered. I join Senator Butler and others who have highlighted the issue of the self-employed.The Minister hit the ground running and we have a further increase from €400 to €950 in the earned income tax credit. The Government commitment is to bring that to €1,650 by 2018, a most welcome measure for the self-employed. It is recognition for those taking the risks. Most of them are small shopkeepers who do not have the protection of the corporate veil if things go wrong. Many times, they lose much. If their businesses went, they had to pay redundancy. That law was changed several years ago where the State would assist. There is an awful weight of responsibility on them and they take many risks. In small towns and communities, like in my own, they are the ones sponsoring the kids' football and local GAA team. I am delighted the Minister has this ongoing dialogue.

I welcome the additional support he has provided for lone parents. Senator Humphreys pointed out there were previous difficult budgets. It is all very well to argue we want to get lone parents working. Where I am based, however, there is one of the highest unemployment rates and work is simply not there. All we are doing is putting people into poverty. I welcome the increase in the income disregard which will apply to one-parent family and jobseeker's transition payments from January. I welcome the new €500 cost of education allowance. The Minister tried to find some fairness with the €5 increase across the board. One would need the wisdom of Solomon to deal with this.

The Minister should look at the case of those paying PRSI on rental income, especially when they have other income. They do not get anything for this and, in effect, it is just a tax. If it is a tax, then it should be called one. If not, then can those paying it get something for it, in the same vein as we are talking about the self-employed? I welcome the measures the Minister took which will help rural areas. The measure to allow income disregards in the farm assist scheme will allow farmers to stay on marginal holdings. The increase in the rural social scheme will help those schemes which are carrying out work that is the lifeblood of communities. I appreciate all the good work the Minister has done and look forward to continuing to work with him on the issues which matter to the people who need assistance from our social welfare system.